Nasdaq enters correction territory as Middle East conflict uncertainty sends U.S. stocks lower. The Dow industrials are on pace for their largest one-month percentage decline since 2022, while the S&P 500 and Nasdaq both suffered their biggest one-day drops since the war began. Oil prices surged past $100 a barrel again Thursday, reflecting market anxiety about the conflict's duration.

The Dow fell 1% to 469 points, the S&P 500 dropped 1.7%, and the Nasdaq slid 2.4%, closing at levels not seen since September. This reversal follows earlier optimism after a presidential tweet about postponing strikes on Iranian power plants, but market confidence evaporated as uncertainty mounted. Thomas Martin, senior portfolio manager at Globalt Investments, noted investors are grappling with whether a deal exists in the Gulf's volatile situation.

The Nasdaq's 10% decline from its peak marks its first correction since 2022, signaling investors are losing faith in a swift resolution to the conflict.